One of TSMC's Biggest Customers Cuts 3nm Wafer Orders As Consumer Demand Deflates

[Dux]

End of covid lockdowns = less people gaming + end of ETH GPU mining= AMD,Nvidia in tears.

 

[RedelZaVedno]

Something's gonna happen soon. Here in Europe we have to live with 10,7% official inflation (energy annual inflation in the EU reached 41.1% , food 19% year-on-year, rent 20%) and our salaries went up only 4.5% on average. We're literally more than 6% poorer on average statistically and much more if one considers most of us have to spend majority of our incomes for food, energy and rent plus another hit 20% EURO devaluation vs USD... Deep recession is already here, it's just that our politicians don't want to admit how screwed we are yet. My salary went up double the average 9% but my purchasing power still weakened considerably. These are not the times people would consider buying expensive high end tech toys when they have energy bills and ever increasing food prices and loan payments to think of.

 

[Bwaze]

You guys are getting raises?

:-D

Our boss told us months ago that industry is already slowing down, so hard times are already here - and our salaries are on hold again - company survival depends on it. I imagine I lost about 20% of purchasing power in 2009 austerity measures (and never got it back) , this one will be even worse since the inflation is even higher, and reasons for crysis even more complex.

Official numbers for inflation, and salary increases are a joke.

 

[Legacy-ZA]

Something's gonna happen soon. Here in Europe we have to live with 10,7% official inflation (energy annual inflation in the EU reached 41.1% , food 19% year-on-year, rent 20%) and our salaries went up only 4.5% on average. We're literally more than 6% poorer on average statistically and much more if one considers most of us have to spend majority of our incomes for food, energy and rent plus another hit 20% EURO devaluation vs USD... Deep recession is already here, it's just that our politicians don't want to admit how screwed we are yet. My salary went up double the average 9% but my purchasing power still weakened considerably. These are not the times people would consider buying expensive high end tech toys when they have energy bills and ever increasing food prices and loan payments to think of.

All by design.

 

[80-watt Hamster]

All by design.

Careful, that way madness lies.

 

[thesmokingman]

Hey, it's a perfect time steal tax payer money to dump to de-globalize our chips industry as demand plummets lol.

 

[80-watt Hamster]

Hey, it's a perfect time steal tax payer money to dump to de-globalize our chips industry as demand plummets lol.

Yeah, they were WAY behind the 8-ball on that. Boom cycles f everything up.

 

[TheinsanegamerN]

Yeah, they were WAY behind the 8-ball on that. Boom cycles f everything up.

Frankly, like many other industries, they never should have let it leave our shores in the first place. Even back in the 90s it was becoming pretty obvious how important chips would be to our future infastructure.

 

[medi01]

TSMC's biggest customer -- Apple

Is actually (obviously) not TSMC's biggest customer.

 

[AnotherReader]

Is actually (obviously) not TSMC's biggest customer.

Who's the biggest customer if it isn't Apple?

 

[MrBeasterer]

Relax with the inflation and other paranoia. No one guaranteed anything to begin with. Cut costs, sell something, rasise some prices. Live your life without prooving anything to anyone. That's it. And do not stress over clickbait internet postings. They knew they could be scaling down, not surprising anyone, they think ahead about stuff.

At the same time Computing is like fuel - it's needed for everything. So datacenters and big projects keep everything going. There's no stopping this huge interdependent machine.

Take care of yourselves and keep moving forward.

 

[TheinsanegamerN]

Relax with the inflation and other paranoia. No one guaranteed anything to begin with. Cut costs, sell something, rasise some prices. Live your life without prooving anything to anyone. That's it. And do not stress over clickbait internet postings. They knew they could be scaling down, not surprising anyone, they think ahead about stuff.

At the same time Computing is like fuel - it's needed for everything. So datacenters and big projects keep everything going. There's no stopping this huge interdependent machine.

Take care of yourselves and keep moving forward.

Must be nice to be a multi millionaire who doesnt care about inflation to the point he can label it paranoia.

 

[Dux]

Something's gonna happen soon. Here in Europe we have to live with 10,7% official inflation (energy annual inflation in the EU reached 41.1% , food 19% year-on-year, rent 20%) and our salaries went up only 4.5% on average. We're literally more than 6% poorer on average statistically and much more if one considers most of us have to spend majority of our incomes for food, energy and rent plus another hit 20% EURO devaluation vs USD... Deep recession is already here, it's just that our politicians don't want to admit how screwed we are yet. My salary went up double the average 9% but my purchasing power still weakened considerably. These are not the times people would consider buying expensive high end tech toys when they have energy bills and ever increasing food prices and loan payments to think of.

Your salary went up? At this point I'm lucky i pay my bills on time and have food.

 

[mechtech]

Does this mean all the fabs that were saying several months ago they were going to invest billions on making new fabs to meet demands is still going ahead?

 

[BorisDG]

Is actually (obviously) not TSMC's biggest customer.

 

[Minus Infinity]

Sounds like downward spiraling - the less demand, the more you increase the prices, the more you amplify the willingness of people NOT to buy .

And yet many businesses operate on tnat principle. As demand falls, sales plunge they keep increasing prices to maintain revenue, that leads to further sales declines that leads to further prices rises. Ask Olympus why they finally sold off their camera division, because this is how they operated for last 8 years and it backfired spectacularly. But they spat the dummy rather than lower margins.

 

[umeng2002]

It never ceases to amaze me how companies can expect tremendous demand to continue when the factors that created the demand are gone. It ruins many companies. The crypto bros and COVID cash are gone. Someone needs to tell companies this.

Something's gonna happen soon. Here in Europe we have to live with 10,7% official inflation (energy annual inflation in the EU reached 41.1% , food 19% year-on-year, rent 20%) and our salaries went up only 4.5% on average. We're literally more than 6% poorer on average statistically and much more if one considers most of us have to spend majority of our incomes for food, energy and rent plus another hit 20% EURO devaluation vs USD... Deep recession is already here, it's just that our politicians don't want to admit how screwed we are yet. My salary went up double the average 9% but my purchasing power still weakened considerably. These are not the times people would consider buying expensive high end tech toys when they have energy bills and ever increasing food prices and loan payments to think of.

That's the way it always goes. Companies use the price increases to pay for the cost of making goods (material costs). Then to maintain profits. Then pay executives. FINALLY, they MIGHT pay their employees more. The business owners (shareholders) always get their cut first.

 

[mb194dc]

It's the Covid boom and bust combined with further inflation from the Russian war and higher interest rates.

Tech is a luxury pretty much, almost no one actually needs to upgrade or a new phone every year.

The year on year differences from upgrades have got more and more marginal. A PC from 5 years ago will still do a decent job in most tasks. Same for phones.

 

[stimpy88]

TSMC got greedy.

 

[Chomiq]

TSMC got greedy.

What? More like Apple overestimated the demand and their new Iphones are a flop.

 

[Bwaze]

Apple has even bigger problem coming, their main assembler Foxconn had apparently tried to bend the Chinese "zero Covid policy" by literally jailing the workforce to the factories where outbreaks were happening, panicked workers brought down barrier fence to escape the "quarantined factory"...

China Covid: Panic and fear drove iPhone factory breakout

 

[medi01]

View attachment 268387

Is that by revenue?

Figures do not add up. About 200 million of rather small chips for iphones.

AMD orders 100+ CPU chips, 50+ million APUs for consoles, and GPUs (huge dies) on top of it.
(and was constrained by supply issues in 2021)

PS
That chart doesn't come from TSMC, it's based on "guesses" and depending on the source that is "guessing" the figure varies wildly.
Statista shows two times smaller share for AMD for 2021, for instance:

TSMC: revenue share of leading customers 2021 | Statista

In 2021, Apple was the largest customer of the Taiwanese semiconductor foundry TSMC, contributing a quarter of the company's revenues.

www.statista.com

 

[Wirko]

The year on year differences from upgrades have got more and more marginal. A PC from 5 years ago will still do a decent job in most tasks. Same for phones.

We had usable PCs three, even four decades ago. The amount of money poured into the development of PC-related technologies before that, and after that, is impossible to even imagine. Is anybody surprised to see they have reached maturity?

 

[AnotherReader]

Is that by revenue?

Figures do not add up. About 200 million of rather small chips for iphones.

AMD orders 100+ CPU chips, 50+ million APUs for consoles, and GPUs (huge dies) on top of it.
(and was constrained by supply issues in 2021)

PS
That chart doesn't come from TSMC, it's based on "guesses" and depending on the source that is "guessing" the figure varies wildly.
Statista shows two times smaller share for AMD for 2021, for instance:

TSMC: revenue share of leading customers 2021 | Statista

In 2021, Apple was the largest customer of the Taiwanese semiconductor foundry TSMC, contributing a quarter of the company's revenues.

www.statista.com

The chips aren't as small as you think; typically, they are between 80 and 110 mm^2. Remember that they are on the leading edge nodes before everyone and almost all of their products are on either the current node or the previous node. Their volume of over 200 million SOCs dwarfs AMD and Nvidia and despite the smaller die sizes, those volumes and early commitment to nodes ensure that they surpass those two as a customer for TSMC. You also forget the iPad and Mac which together have greater volumes than Nvidia.

 

[kiakk]

Who are wondering?

Spoiler: Idiocracy

Leaders of the industy and global markets are fckN idiots or evil I still can not decide, because I do not think they are idiots, but they still do idiots steps that escalate themselfs...
They lock down everybody for 2 years, "printing" tons of paper money while they are just write a number on the central bank account, generate inflation with this and and also inflation generator the raising of energy prices that circle into every part of every market. This is also not an accident, these steps are still conscious.
While industry still fckD up about design and produce low energy and efficient product with the upcoming shits.
Also no energy efficency regulation on many high energy consumer product (first thoughts in my mind are refrigerator, microwave etc...) and now we do not buy much of new shits, Do anybody wonder? I also do not think they wonder and the plan still goes on...
And now also we will not solve energy shits, becuse we do not produce and buy low-E products, while we will pay for high energy consumptions and no consumer money for low-E products and low-E inverstment for houshoulds for masses of the society. Clap-clap! I thought may WEF are smart for a great plan, but they fucked up, because basically they want to reach their goals while their companies still scam us for the huge margin... But they can just escalate a conflict for the whole planet in the name of money.